Georgia Hourly Paycheck Calculator
Georgia is known as the Peach State due to the millions of peaches grown within its borders each year. We think you’ll be feeling peachy after understanding Georgia payroll taxes and rules for employers. We’ll talk you through them so you can easily process payroll in your state.
Georgia payroll taxes
Georgia withholding tax
Georgia uses a progressive tax system for personal income tax with a top rate of 5.75% for 2022. This means that higher income is taxed at a higher rate.
All Georgia employers must withhold Georgia income tax from the wages of their employees. This includes most non-Georgia residents who work in Georgia.
The amount of tax you’ll withhold is based on wages, the number of allowances, and any additional withholding amounts shown on Form G-4, Employee’s Withholding Allowance Certificate. You can use tax tables or the percentage method to determine the final withholding amount.
If an employee doesn’t complete a Form G-4, you can substitute the federal withholding information on Form W-4 to calculate the withholding amount.
But if the federal form doesn’t provide enough information to make the calculation, that doesn’t mean you don’t have to withhold Georgia withholding tax. Instead, you’ll withhold tax assuming the employee is single with zero allowances.
Paying Georgia withholding tax
Depending on the amount of tax withheld, you’ll file and pay the tax either:
- Semi-weekly,
- Monthly,
- Quarterly, or
- Annually.
Be aware of an exception for withholding of more than $100,000 for a payday. If that’s you, you’re required to make the tax payment the next banking day.
Also, keep in mind that filing a zero return is necessary. That means that even if no tax was withheld and owed, Form G-7 must still be filed.
Georgia unemployment tax
Georgia uses an unemployment tax paid by most employers to provide temporary income to workers unemployed through no fault of their own.
Depending on your business type, having only one part-time employee can trigger unemployment tax.
The first $9,500 of each employee’s wages each year is subject to Georgia unemployment tax. New employers are assigned a 2.64% tax rate. At the same time, established companies receive their tax rate each year and it’s based on the history of claims paid to your former workers, the amount of your payroll, the tax previously paid, and the overall unemployment conditions in Georgia.
Other Georgia payroll rules
Annual filing of Form W-2 and 1099: W-2s and Form 1099-NEC, with limited exceptions, must be filed with the Georgia Department of Revenue by January 31 for the previous year.
Domestic workers and farm laborers: Withholding isn’t required for most domestic workers and farmworkers, but employers may choose to withhold.
New hires: Hiring new employees or rehiring employees means you’ll have to report them to the Georgia New Hire Reporting Center within ten days of their hire date.
Separation notices: When you terminate an employee, you’ll need to provide a separation notice detailing the reasons for letting the employee go. The notice needs to be given on the employee’s last day of work or mailed to the last known address if the employee is unavailable.
Minimum wage: For 2022, the minimum wage in Georgia is $7.25 per hour.
Overtime: Hourly employees who work more than 40 hours per week are paid at 1.5 times the regular pay rate.
Workers’ Compensation: Requirements to obtain Workers’ Compensation vary by state, this table outlines some of these requirements.
If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto.
Sometimes, companies get a request for a workers’ comp audit. Head to this article and click the workers’ comp audit reports dropdown for more information.
Federal payroll taxes
In addition to the Georgia payroll taxes, there are a few federal taxes you’ll need to pay or withhold. They can be broken into three categories:
- Employer-paid
- Employee-paid
- Shared between employer and employee
| Federal Payroll Taxes for Georgia Employers | ||
| Employer-paid | Employee-paid | Shared |
| FUTA | FIT | FICA |
| Additional Medicare |
Federal Unemployment Tax (FUTA)
Not only do employers pay unemployment tax to the state of Georgia, but they also pay it to the federal government.
The Federal Unemployment Tax Act requires employers to pay 6% of the first $7,000 of each employee’s wage each year. However, paying your state unemployment taxes on time can reduce the rate to 0.6%.
Most employers will pay this tax annually with Form 940. But larger employers with more than $500 in tax due will have to pay quarterly.
Federal Income Tax (FIT)
Like Georgia withholding tax, you’ll need to withhold federal income taxes from your employees’ pay, unless they are exempt.
The amount to withhold depends on inputs on Form W-4. Things like tax filing status, the number of dependents, and total wages influence the amount withheld.
And if an employee is exempt from withholding, they will mark that on Form W-4.
Form W-4 is completed by employees when they begin work and should be updated anytime their tax situation changes for things like getting married or having a child.
Additional Medicare Tax
Some of your employees may owe the Additional Medicare Tax depending on how much they earn and their tax filing status.
As an employer, you’re responsible for withholding this tax from any employee earning more than $200,000 per year. The tax rate for 2022 is 0.9%.
Federal Insurance Contributions Act (FICA)
The Social Security tax and Medicare tax are commonly referred to as FICA tax. Its origins date back to the 1930s when Social Security was created.
FICA is shared equally among the employer and employee, with each kicking in 7.65% of the employee’s pay.
| Breakdown of FICA tax | |
| Social Security | 6.2% on the first $147,000 of employees’ wages for 2022 |
| Medicare | 1.45% on all employees’ wages for 2022 |
Paying federal payroll taxes
As mentioned above, federal unemployment tax is generally paid annually.
The other federal taxes are paid semi-weekly or monthly, depending on how much tax is due. Most companies will need to pay electronically while submitting Form 941 quarterly. The 941 is a summary report that reconciles how much tax is due with how much tax you paid for the previous calendar quarter.
Payroll processing doesn’t have to be taxing. With just a few clicks, the Gusto Georgia Hourly Paycheck Calculator shows you how payroll taxes are calculated. And our comprehensive payroll packages make calculating your payroll plain and straightforward. With flexible options, you’ll have as much or as little help as you need.
Disclaimer
The information provided by the Employer Tax Calculator is for general information and estimation. All of the taxes or fees that apply to your business may not be accounted for, or fully up to date. Gusto, Inc. (dba “Gusto”) does not promise or guarantee that the information in the Employer Tax Calculator is accurate or complete, and Gusto expressly disclaims all liability, loss or risk incurred by employers or employees as a direct result or an indirect consequence of its use. By using the Employer Tax Calculator, you waive any rights or claims you may have against Gusto in connection with its use.